Introduction
Personal injury cases, especially those stemming from auto accidents, can be complex and challenging to navigate. In states like New Jersey, the intricacies of the no-fault system and the choices between different thresholds further complicate the matter. This column aims to shed light on these complexities, focusing on the verbal threshold in New Jersey and its implications for accident victims.
New Jersey’s No-Fault System
New Jersey operates under a no-fault system, meaning that regardless of who is at fault in an auto accident, each party’s insurance covers their own medical expenses. This system is designed to reduce the number of lawsuits and streamline the claims process. However, it also means that victims have limited rights to sue for pain and suffering damages unless certain thresholds are met.
Thresholds for Stepping Outside the No-Fault System
In New Jersey, the no-fault system primarily covers medical expenses through Personal Injury Protection (PIP). However, victims can step outside this system to sue for pain and suffering if they meet certain injury thresholds. This is where the concept of “verbal threshold” or “limitation on lawsuit option” comes into play.
Choosing Between Limited Right to Sue and Unlimited Right to Sue
In New Jersey, auto insurance policyholders have the option to choose between a “Limited Right to Sue” and an “Unlimited Right to Sue.” The verbal threshold was introduced to make insurance more affordable by limiting the types of damages one can recover through a lawsuit. By opting for the Limited Right to Sue, policyholders pay lower premiums but also limit their ability to sue for pain and suffering unless they sustain specific types of injuries. On the other hand, the Unlimited Right to Sue option allows policyholders to sue for any injury, but it comes with higher premiums.
Comparative Negligence in New Jersey
In New Jersey, the concept of comparative negligence applies. This means that if you’re partially at fault for an accident, your compensation for pain and suffering (not medical expenses) can be reduced by the percentage of your fault. For instance, if you’re found to be 20% at fault, you can only recover 80% of your pain and suffering damages.
Exceptions to the Verbal Threshold in New Jersey
While the verbal threshold limits the ability to sue for pain and suffering, there are exceptions. For instance, if the driver has no threshold insurance, they, along with their spouse or child (if not covered under another policy), are not subject to a threshold limit. Other exceptions include injuries caused by commercial vehicles not covered by PIP and out-of-state residents whose insurance carriers don’t operate in New Jersey.
Disadvantages of the Verbal Threshold
The primary disadvantage of the verbal threshold is the limitation on damages. Unless the victim sustains permanent injuries, they cannot claim lost wages or pain and suffering. Permanent injuries include severe burns, significant disfigurement, displaced fractures, and conditions that won’t heal, among others.
Is It Possible to Sue for Pain and Suffering Under a Verbal Threshold Policy?
Yes, but only if the injuries are deemed permanent. Proving permanent injuries can involve medical records, test results, and expert testimonies. Over the years, various court cases in New Jersey have helped shape the understanding of what constitutes “permanent injuries.” For instance, in past cases, courts have delved into the nuances of injuries like herniated discs, soft tissue injuries, and even psychological trauma to determine their permanency and eligibility for pain and suffering claims.
Conclusion
Understanding the nuances of New Jersey’s personal injury thresholds is crucial for anyone involved in an auto accident in the state. While the no-fault system offers certain protections, it also comes with limitations. It’s essential to be well-informed and consult with a legal professional to navigate the complexities and ensure your rights are protected.
Disclaimer: This column is provided for informational purposes only. If you need legal advice, call us now at 201-461-0031 or email pi@songlawfirm.com for consultation.